Foord International Feeder Fund
CLOSED TO NEW INVESTMENT
For conservative, absolute return-oriented investors in global markets
INVESTMENT OBJECTIVE
The fund aims to achieve meaningful inflation-beating US$ returns over rolling five-year periods from a conservatively managed portfolio of global investments reflecting Foord's prevailing best investment view.
FOR SOUTH AFRICAN INVESTORS
• With a moderate risk profile
• Requiring diversification through investments not available in South Africa
• Seeking to hedge rand depreciation.
| Year | Fund Return % | Benchmark Return % | SA Inflation % |
|---|---|---|---|
| 2006 (from 01/Mar) | 24.9 | 28.4 | 5.0 |
| 2007 | 9.2 | 4.6 | 8.9 |
| 2008 | 12.6 | -19.0 | 9.5 |
| 2009 | -6.9 | -1.4 | 6.3 |
| 2010 | -1.7 | -1.6 | 3.5 |
| 2011 | 19.1 | 15.9 | 6.1 |
| 2012 | 16.4 | 22.3 | 5.7 |
| 2013 | 42.5 | 57.7 | 5.4 |
| 2014 | 8.7 | 16.3 | 5.3 |
| 2015 | 36.1 | 33.3 | 5.2 |
| 2016 | -10.5 | -3.9 | 6.8 |
| 2017 | 4.2 | 10.9 | 4.7 |
| 2018 | 4.1 | 6.4 | 4.5 |
| 2019 | 14.5 | 25.3 | 4.0 |
| 2020 | 12.3 | 22.3 | 3.1 |
| 2021 (to 30/Sep) | 3.1 | 16.3 | 4.5 |
| Benchmark |
To achieve meaningful US inflation-beating ZAR equivalent returns over a full investment cycle. |
| Time horizon |
Longer than three years. |
| Inception date |
1 March 2006 |
| Minimum investment |
R50 000 lump sum or R1 000 per month |
| Significant restrictions |
The portfolio may only invest in cash and one other collective investment scheme. |
| Income distributions |
The Foord International Fund, in which the fund invests, does not distribute its income. |
| Income characteristics |
Marginal to zero income yield as the Foord International Fund is a roll-up fund and does not distribute its income. |
| Portfolio orientation |
Fully invested in the Foord International Fund, sub-fund of Foord SICAV, domiciled in Luxembourg. |
| Risk of loss |
Currency volatility means risk of loss in the short term is high. In general, the risk of loss is lower than that of the average foreign equity fund. |
| Security description | Asset class | Market | Portfolio weight % |
|---|---|---|---|
| FMC Corp | Equity | US | 6.9 |
| ETFS Physical Gold | Commodity | GB | 6.4 |
| Nestle | Equity | CH | 5.9 |
| SSE PLC | Equity | GB | 5.9 |
| CVS Health Corp | Equity | US | 4.6 |
| Freeport-McMoran Inc | Equity | US | 4.2 |
| Roche Holding AG | Equity | CH | 3.9 |
| Alphabet Inc | Equity | US | 3.8 |
| Johnson and Johnson | Equity | US | 3.7 |
| Wheaton Precious Metals Corp | Equity | US | 3.6 |
Monthly Commentary – September 2021
- Developed market equities (-4.2%) feel for the first time in eight months—a likely peak in global growth, increasingly hawkish central banks, the imminent US debt ceiling and potential credit default by China's largest property developer were too much for investors to shrug off when coupled with elevated valuations
- Emerging market equities (-4.0%) also fell, with Brazilian equities (-13.0%) faltering after the central bank raised the benchmark interest rate for the fifth time this year to combat near double-digit inflation—while investors in Chinese bourses (-5.0%) reflected expectations for slowing growth and a potential credit default by the country’s largest property developer, Evergrande
- Developed market bond yields, including the US 10-year, rose on worries that rising global inflation may not be as transitory as first believed—while Chairman Powell continues to walk a fine monetary policy line, it is becoming increasingly probable the US Fed will begin its bond tapering program within the next two months and we continue to expect a lift-off in rates sometime in 2022
- The US dollar advanced strongly against the other majors—with investors now more actively positioning for a moderation of the prevailing accommodative US monetary policy and the subsequent rise in interest rates
- Precious metals platinum (-4.8%), silver (-10.5%) and gold (-3.3%) moved lower on US dollar strength—with palladium (-22.6%) falling on continued auto production problems
- Industrial commodities including iron ore (-24.9%) and copper (-6.2%) fell on concerns of a slowdown in Chinese economic growth compounded by Chinese power supply constraints—oil (+7.6%), gas (+87.5%) and coal (+53.4%) rose sharply as alternative fuels capable of enabling Chinese power generation
- The fund’s US S&P 500 market index hedges contributed the most to fund performance—while leading global copper miner Freeport-McMoran (-10.6%) and US-based gold streamer Wheaton Precious Metals (-16.6%) detracted the most from fund performance
- The rand (-3.8% vs the US dollar) weakened on broad-based dollar strength and negative emerging market sentiment with investors now more actively positioning for a moderation of the prevailing accommodative US monetary policy and the subsequent rise in interest rates—the currency remains vulnerable as the short-term platinum group metals price terms of trade bonus starts to dissipate
The standard charge rate is a fixed fee of 0.35% plus VAT. A 1.00% annual fee is levied in the Foord International Fund.
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